Income Money in Retirement: In the Market or Out? Ep. 103 Artwork

Excel in Retirement

Where financial planning becomes understandable. David brings interesting stories each week to listeners of his Excel in Retirement show along with actionable ideas that may help listeners avoid pitfalls that many people face in their retirement. David C. Treece began his career in the financial services industry in 2011. He is an independent financial adviser. He has passed the Series 65 securities exam, and he is health and life insurance licensed in several states. David’s financial advisory firm focuses on retirement income planning.David worked for two other financial advisors before founding his firm in 2018. David launched Clients Excel because he has a desire for his clients to have a second to none experience when it comes to their financial planning for retirement. David relentlessly strives to be the best at helping people prepare for retirement.The bedrock of David’s ethos is treating others as he would want to be treated.David works tirelessly to continually bring pertinent content to our clients and friends through our weekly newsletter and podcast. Through these, David brings informative content that may aid you in preparing for retirement. Through his financial planning work, David’s hope is that his clients are empowered to have a confident financial future.David and his wife, Mallory, have a daughter named Amelia and rescue dog named Oscar. They also have a backyard flock of chickens that Amelia loves to tend. David and his family are active in their church in Spartanburg. He is also a volunteer mentor with JumpStart, which is a ministry for people who have been recently released from prison.

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Excel in Retirement

Income Money in Retirement: In the Market or Out? Ep. 103

June 15, 2022 • David C. Treece • Episode 103

If you’re watching the news this week you may have seen the wild swings in the market. If one thing is certain it’s that we need to know that when we’re in the market, we may lose money. The market has been generous for over a decade due to easy money policies like ultralow interest rates and government bond buying.

The market tends to be forward looking and price events before they have happened, but the government has done a lousy job forecasting the impact of inflation. Government officials thought inflation would be “transitory” last year, but late in the game they realized it was a problem. Even knowing this, the government was still buying bonds in March which increased the money supply, increasing inflation along with it.

Stanley Druckenmiller, a seasoned money manager and billionaire, states that the economy has never had a soft landing when inflation has gotten above 4.5%. “It’s a historical fact,” according to him. What Druckenmiller is saying is we are heading for a recession.

But, what’s stopping this recession from happening now? Well, Americans are sitting on their savings which has allowed spending to continue. Once savings are depleted however, the recession will begin in haste. This may take 3 months, 6 months, or it may begin next year.

On Monday, we saw the market take a big hit, because of the higher than expected inflation numbers from the previous Friday. Advisor David Nicholas states, “The market thought inflation peaked. The Fed thought inflation peaked.” They were wrong and the market sold off. It’s further evidence that the government is gasping for answers for how to fix the inflation problem.

For these reasons, when we as advisors comprehensively help folks with planning, we suggest not having 10 years-worth of income in the market. Because remember we build all-weather proof financial plans. We help our clients figure out how to generate their retirement income from a stable bucket that cannot lose value. One that can only go up in value. This allows us to stay in the market and ride out storms like we are having this year. In the long-term, this allows our clients market positions to appreciate over time because the allocations have not affected my emotional sentiment.

If you are concerned about how your account is allocated and how the market may impact you, please call our office at 864.641.7955 or reply here to schedule a complimentary 15-minute call.

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